Provisions on the Procedures for Imposition of Administrative Punishments by the Administrative Authorities for Industry and Commerce Released by the State Administration for Industry and Commerce

Order of the State Administration for Industry and Commerce [2007] No. 28

September 4, 2007

The Provisions on the Procedures for Imposition of Administrative Punishments by the Administrative Authorities for Industry and Commerce, deliberated and adopted by the executive meeting of the State Administration for Industry and Commerce of the People's Republic of China, are hereby issued, and shall take effect as of October 1, 2007.

Director-general: Zhou Bohua

Appendix: Provisions on the Procedures for Imposition of Administrative Punishments by the Administrative Authorities for Industry and Commerce

Chapter I General Provisions
　
Article 1 These Provisions are made in accordance with the provisions of the Law of the People's Republic of China on Administrative Penalties and other relevant laws and administrative regulations to standardize and safeguard the legal exercise of powers and the correct imposition of administrative punishments by the administrative authorities for industry and commerce, maintain the social and economic order, and protect the legal rights and interests of citizens, legal persons and other organizations.
　
Article 2 These Provisions shall apply to the imposition of administrative punishments by the administrative authorities for industry and commerce. If there are otherwise provisions in laws and administrative regulations, those provisions shall prevail.
　
Article 3 The administrative authorities for industry and commerce, in the imposition of administrative punishments, shall observe the following principles:
1. The imposition of administrative punishments must be based on laws and administrative regulations and rules; no administrative punishment shall be imposed without such basis;
2. The administrative powers vested by laws and administrative regulations and rules shall be exercised in a fair, open and timely manner;
3. The imposition of administrative punishments must be based on fact and proportionate to the fact, nature, circumstances and degree of social damage of a violation;
4. The combination of punishment and education shall be insisted on to educate citizens, legal persons and other organizations in consciously abiding by the law;
5. The case-handling staffer having a direct interest relationship with the party concerned shall be recused; and
6. The powers shall be exercised legally and independently without illegal interference.
　
Article 4 A higher administrative authority for industry and commerce shall strengthen the supervision over the imposition of administrative punishments by a lower administrative authority for industry and commerce and timely correct the mistakes found in the administrative punishments imposed; the same shall apply to the administrative authorities for industry and commerce at various levels regarding the imposition of administrative punishments by themselves or their dispatched offices.

Chapter II Jurisdiction
　
Article 5 The administrative authority for industry and commerce at or above the county level (county level included, hereinafter the same) at the place of a violation shall have jurisdiction over the imposition of administrative punishment, except as otherwise provided for by laws and administrative regulations.
　
Article 6 The administrative authority for industry and commerce of a county (district) or city (region or prefecture), in its capacity, shall have jurisdiction over cases occurring within its area of jurisdiction.
The administrative authority for industry and commerce of a province, autonomous region or municipality directly under the Central Government, in its capacity, shall have jurisdiction over the major or complicated cases occurring within its area of jurisdiction.
The State Administration for Industry and Commerce, in its capacity, shall have jurisdiction over cases where it shall impose administrative punishments and the major or complicated cases occurring nationwide.
　
Article 7 The specific powers of an administrative office for industry and commerce to impose administrative punishments in its own name according to laws and administrative regulations shall be determined by a provincial administrative authority for industry and commerce.
　
Article 8 The administrative punishments imposed against the illegal advertisements published on such media as broadcasting, film, television, newspaper, periodical and Internet shall be under the jurisdiction of the administrative authority for industry and commerce at the locality of the advertisement publisher. Where it is difficult for the administrative authority for industry and commerce at the locality of the advertisement publisher to exercise its jurisdiction over a non-local advertiser or advertisement operator, the information on the violation by the advertiser or advertisement operator may be transferred to and handled by the administrative authority for industry and commerce at the locality of the advertiser or advertisement operator.
　
Article 9 Where two or more administrative authorities for industry and commerce have jurisdiction over a same violation by the party concerned, the administrative authority for industry and commerce that files the case first shall have jurisdiction.
　
Article 10 Where two or more administrative authorities for industry and commerce have disputes over jurisdiction, they shall settle the disputes through consultation, and if such consultation fails, they shall submit the disputes to their joint next superior administrative authority for industry and commerce for specification of jurisdiction.
　
Article 11 Where an administrative authority for industry and commerce finds that it does not have jurisdiction over a case being investigated by it, it shall transfer the case to the administrative authority for industry and commerce that has jurisdiction. Where the administrative authority for industry and commerce as the transferee raises any objection to the jurisdiction, it shall submit the case to their joint next superior administrative authority for industry and commerce for specification of jurisdiction, and shall not transfer the case again.
　
Article 12 When deeming necessary, a superior administrative authority for industry and commerce may directly investigate a case under the jurisdiction of an inferior administrative authority for industry and commerce, or transfer a case under its jurisdiction to be under the jurisdiction of an inferior administrative authority for industry and commerce. Where a law or administrative regulation expressly provides that a case shall be under the jurisdiction of a superior administrative authority for industry and commerce, the superior administrative authority for industry and commerce shall not transfer the case to be under the jurisdiction of an inferior administrative authority for industry and commerce.
Where an inferior administrative authority for industry and commerce deems that a certain case under its jurisdiction is a major or complicated case, or due to special reasons, a case is too difficult for it to handle, it may submit the case to the next superior administrative authority for industry and commerce for determination of jurisdiction.
　
Article 13 Where a case is submitted to a next superior administrative authority for industry and commerce for determination of jurisdiction, the next superior administrative authority for industry and commerce shall determine the authority to have jurisdiction over the case within five working days as of the date of receiving the submissions.
　
Article 14 For an administrative punishment case that crosses administrative regions, the joint next superior administrative authority for industry and commerce shall do a good job of coordination. The relevant administrative authority for industry and commerce shall actively assist the non-local administrative authority for industry and commerce in investigating the case.
　
Article 15 Where an administrative authority for industry and commerce finds that a case being investigated by it shall be under the jurisdiction of other administrative organ, it shall transfer the case to other relevant authority.
Where an administrative authority for industry and commerce finds that a violation involves a crime, it shall transfer the case to the juridical authority according to the relevant provisions.

Chapter III General Procedures of Administrative Punishments

Section I Case Filing
　
Article 16 An administrative authority for industry and commerce shall find, investigate and punish violations through its powers of supervision and inspection or through such channels as complaint, appeal, report, transfer from another authority and assignment by a superior authority.
　
Article 17 Within seven working days as of receiving a complaint, appeal or report or materials transferred from another authority or assigned by a superior authority, an administrative authority for industry and commerce shall examine the same and decide whether or not to file a case; under special circumstances, such a time limit for deciding whether or not to file a case may be extended to 15 working days.
　
Article 18 In case filing, an examination and approval form shall be filled out, with the relevant materials attached (complaint, appeal or report materials, materials assigned by a superior authority or transferred from another authority, materials provided by a party concerned, supervision and inspection reports, evidence examined and acquired, etc.). It shall be subject to the approval of the principal in charge of an administrative authority for industry and commerce at or above the county level, and the principal in charge of the case-handling body shall specify two or more case-handling staffers to be responsible for investigation and handling.
　
Article 19 For a complaint, report or appeal on which a case is not filed, the case-handling body shall notify the complainer, appellant or informant whose name is known of the result upon approval of the principal in charge of an administrative authority for industry and commerce. An administrative authority for industry and commerce shall make and keep a written record of information on cases not filed.

Section II Investigation and Collecting Evidence
　
Article 20 After a case is filed, the case-handling staffers shall timely investigate and gather and take evidence, and may conduct inspection according to the provisions of laws and administrative regulations.
When evidence is gathered, investigated or taken from a case party for the first time, the case party shall be notified of its or his right to request recusal of a case-handling staffer.
When evidence is gathered, investigated or taken from a relevant unit or individual, the relevant unit or individual shall be notified of its or his obligation to provide true evidence.
　
Article 21 In the investigation of a case, the number of case-handling staffers shall not be less than two. When investigating or taking evidence, the case-handling staffers shall wear uniforms of the administration of industry and commerce, and present the Law Enforcement Certificates for the Administration of Industry and Commerce of the People's Republic of China.
The Law Enforcement Certificate for the Administration of Industry and Commerce of the People's Republic of China shall be uniformly made and issued by the State Administration for Industry and Commerce or issued by an empowered provincial administration for industry and commerce.
　
Article 22 Where it is necessary to entrust another administrative authority for industry and commerce with assisting investigation or taking evidence, a written letter of entrustment of investigation shall be issued, and the entrusted administrative authority for industry and commerce shall actively assist. Where assistance cannot be provided, the entrusted administrative authority for industry and commerce shall timely notify, by letter, the entrusting authority of information on such inability to assist.
　
Article 23 The case-handling staffers shall legally gather and take evidence related to a case. The evidence shall include:
1. Documentary evidence;
2. Physical evidence;
3. Witness testimonies;
4. Audiovisual materials and computer data;
5. Statements of the party concerned;
6. Conclusion of authentication; and
7. Field investigation records or records made on the spot.
The above evidence shall comply with the provisions on evidence of laws and administrative regulations and rules, and may be admissible as evidence for determination of facts only after being investigated to be true.
　
Article 24 The case-handling staffers may inquire of the party concerned and testifiers and the inquiry shall be made individually. An inquiry record shall be made, which shall be verified by the inquired; and where the inquired has any reading disability, it shall be read to him. Where there is any mistake or omission in the record, he shall be allowed to make modification or supplement. Any alteration shall be confirmed by the inquired by affixing his signature or seal thereon or by other means. After being verified to be correct, the record shall be confirmed by the inquired by affixing his signature or seal on each page or by other means. The case-handling staffers shall also sign the record.
　
Article 25 The case-handling staffers may require the party concerned and testifiers to provide evidential materials or other materials related to a violation, and the providers of such materials shall affix their signatures or seals on the relevant materials.
　
Article 26 The case-handling staffers shall gather, investigate and take the original credence as evidence; where there is any difficulty in investigating and taking the original documents, a duplicate, photocopy or handwritten copy may be taken, and the evidence provider shall mark such words as "complying with the original copy upon checking", mark the date of provision and source of evidence, and affix its or his signature or seal thereon.
　
Article 27 For evidence taken from outside the territory of the People's Republic of China, its source shall be explained, and it shall be notarized by a notary body of the country where it is taken and authenticated by the embassy of the People's Republic of China in that country, or the certification procedures as provided for in the relevant treaty between the People's Republic of China and the country where the evidence is taken shall be conducted.
For evidence taken from the Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan region of the People's Republic of China, the certification procedures shall be conducted according to the relevant provisions.
　
Article 28 For audiovisual materials and computer data evidence, the case-handling staffers shall gather their original carriers. Where there is any difficulty in gathering the original carriers, the duplicates of them may be gathered, and the information on their making methods, making time and makers shall be marked. The audio materials shall be accompanied by the literal records of the audio contents.
　
Article 29 When an item or place suspected to involve a violation is inspected, the party concerned or a third party shall be present, and a record on the spot shall be made, with the time, place, event and other information marked thereon, and be signed or sealed by the case-handling staffers, the party concerned and the third party.
When necessary, the conditions on the spot may be recorded by such means as photographing and video recording.
　
Article 30 When an administrative authority for industry and commerce takes evidence by sampling, the party concerned shall be present, the case-handling staffers shall make a sampling record, seal the sample and issue a list of items, and the case-handling staffers and the party concerned shall affix their signatures or seals on the seal and relevant record.
Where a law, administrative regulation or rule or relevant state provision provides otherwise for a sampling body or method, an administrative authority for industry and commerce shall entrust a relevant body with the sampling or take a sample in the method as provided for.
　
Article 31 Where it is necessary to conduct authentication of a specific matter in a case so as to find out the truth, an administrative authority for industry and commerce shall issue a written authentication entrustment that states the entrusted authentication matter and relevant materials, and entrust an authentication body that is qualified in law with the authentication; in the absence of a statutory authentication body, may entrust any other body that is qualified for authentication with the authentication. The signatures or seals of the authenticators and the official seal of the authentication body shall be affixed on the conclusion of authentication.
　
Article 32 Where evidence may be destroyed or hard to be taken at a later time, an administrative authority for industry and commerce may adopt advance registration and preservation measures for evidence related to the suspected violation.
The adoption or discharge of the advance registration and preservation measures shall be subject to the approval of the principal in charge of the administrative authority for industry and commerce.
　
Article 33 In the advance registration and preservation of the relevant evidence, the evidence shall be sorted and counted on the spot, a list shall be issued, on which the signatures or seals of the party concerned and case-handling staffers shall be affixed and a copy of which shall be given to the party concerned, and a notice of advance registration and preservation of evidence shall be served on the spot.
During the period of advance registration and preservation, the party concerned or relevant persons shall not spoil, destroy or transfer the evidence.
　
Article 34 For the evidence in the advance registration and preservation, the following measures shall be adopted within seven days:
1. Evidence preservation measures timely taken, such as recording, duplication, photographing, video recording, etc., as the case may be;
2. Timely delivery to the relevant body for authentication, when authentication is necessary;
3. Make an administrative punishment decision and confiscate the illegal items, when the alleged fact of violation is true and the confiscation shall be made;
4. Make a decision on a seizure or detainment (including sealing and withholding, hereinafter the same), when a seizure or detainment may be made according to the relevant provisions of laws and administrative regulations; and
5. Decide to discharge the advance registration and preservation measures, when the alleged fact of violation is not true or is true but a seizure, detainment or confiscation shall not be adopted according to law.
Where a handling decision is not made within the time limit, the advance registration and preservation measures shall be automatically discharged.
　
Article 35 Where the laws and administrative regulations provide for such administrative compulsory measures as seizure and detainment, such measures may be implemented as the case may be. Where any compulsory measure is adopted, the party concerned shall be notified of its or his right to apply for administrative reconsideration and right to bring an administrative lawsuit.
The adoption of such administrative compulsory measures as seizure and detainment or the discharge of administrative compulsory measures shall be subject to the approval of the principal in charge of the administrative authority for industry and commerce.
　
Article 36 In the seizure or detainment of property of the party concerned, the property shall be sorted and counted on the spot, a list shall be issued, on which the signatures or seals of the party concerned and case-handling staffers shall be affixed and a copy of which shall be given to the party concerned, and a notice of seizure or detainment of property shall be served on the spot. Where an advance seizure or detainment measure is legally adopted, the procedures for seizure or detainment shall be made up within the time limit as prescribed by laws and administrative regulations.
　
Article 37 To detain the items consigned by the party concerned, a notice of detainment assistance shall be made and sent to the relevant transportation authority for assistance, and the party concerned shall be notified in writing.
　
Article 38 Where it is necessary to detain an item that is suspected to involve a crime and kept at home or deposited by the party concerned, the party concerned shall be ordered to take it out; where the party concerned refuses to take it out, the item shall be taken out in conjunction with the relevant local authorities, and the procedures for detainment shall be conducted.
　
Article 39 The property seized or detained shall be properly kept, and shall not be used, exchanged or damaged.
Where the laws and administrative regulations allow the advance disposal of items that tend to rot or go bad, or the party concerned agrees on the advance disposal, with the approval of the main principal of the administrative authority for industry and commerce, the advance disposal may be made after the relevant measures are taken to save evidence.
A seized item shall be sealed by the administrative authority for industry and commerce, and no one shall use it at will.
　
Article 40 Where the seized or detained property is ascertained to have nothing to do with a violation or the adoption of a seizure or detainment measure is no longer necessary, the seizure or detainment measure shall be discharged, a notice of discharge of seizure or detainment shall be served, the seized or detained property shall be returned to the party concerned as it is, and the case-handling staffers and the party concerned shall affix their signatures or seals on the list of property.
　
Article 41 Where the body or domicile of a natural person must be inspected, the public security organization shall be legally requested to conduct the inspection, and the administrative authority for industry and commerce shall assist.
　
Article 42 Such measures as order of suspension of sales and order of prohibition of transfer, concealment or destruction of relevant property by the party concerned, taken by an administrative authority for industry and commerce according to laws and administrative regulations, shall be subject to the approval of the principal in charge of the administrative authority for industry and commerce, and in written form notified to and performed by the party concerned.
　
Article 43 In the process of investigation and taking evidence, the case-handling staffers shall require the party concerned to confirm a record or other materials by affixing its or his signature or seal thereon or by other means, and where the party concerned refuses to be present or refuses to confirm by affixing its or his signature or seal thereon or by other means or the party concerned cannot be found, the case-handling staffers shall mark the reasons on the record or other materials, and when necessary, may invite relevant persons as witnesses.
　
Article 44 The party concerned, when deeming that a case-handling staffer has any interest relationship with it, shall have the right to apply for the recusal of the case-handling staffer; and a case-handling staffer, when deeming that he has any interest relationship with the party concerned, shall apply for recusing himself.
The recusal of a case-handling staffer shall be subject to the decision of the principal in charge of the administrative authority for industry and commerce.
　
Article 45 When the case investigation is over, or the case-handling body deems that the investigation shall be terminated, a case shall be handled in a way as follows:
1. Where it is determined that the alleged fact of violation is true and an administrative punishment shall be imposed, an investigation conclusion report shall be prepared and an administrative punishment proposal shall be drafted, to be examined by the examination body together with the case file. The investigation conclusion report shall include the basic information on the party concerned, the alleged fact of violation, the relevant evidence and matters proved, the nature of case, the reasons for discretion, the basis for punishment, the punishment proposal, etc.
2. Where it is determined that the alleged fact of a violation is not true and the case shall be closed; the violation is a light one, no damaging results are caused and an administrative punishment may not be imposed; the case is not under the jurisdiction of this authority and shall be transferred to be under the jurisdiction of other administrative organ; or a crime is suspected and the case shall be transferred to the judicial authority, an investigation conclusion report shall be prepared, explaining the reasons for the proposed handling, and reported to the principal in charge of the administrative authority for industry and commerce for approval and the case shall be disposed as the case may be.

Section III Examination and Approval
　
Article 46 An administrative authority for industry and commerce of provincial level may determine the type and scope of the case to be examined and approved by the administrative authorities for industry and commerce of all levels that are under their jurisdiction according to the actual conditions of its area of jurisdiction.
　
Article 47 Examination and approval of cases shall be implemented by legislative affairs office of an administrative authority for industry and commerce. The case in which an administrative office for industry and commerce imposes administrative punishments in its own name shall be subject to examination and approval by the jural personnel of an administrative office for industry and commerce.
　
Article 48 After the receipt of materials to be examined filed by the case-handling body, the examination body shall process the registration and designate specific personnel to be in charge of the examination and approval.
　
Article 49 Main contents for examination of a case shall include:
1. Whether the case to be handled is under jurisdiction;
2. Whether the basic information of the party concerned is clear;
3. Whether the facts of a case are clear, and the evidences are sufficient;
4. Whether the qualitative identification is accurate;
5. Whether the applied basis is accurate;
6. Whether the punishment is proper; and
7. Whether the procedures are legitimate.
　
Article 50 After the examination of a case by the examination body, the following written opinions and proposals shall be provided:
1. For any case with clear facts, authentic evidences, accurate applied basis and qualitative identification, proper punishment and legitimate procedures, agree with the opinions of the case-handling body, and propose to inform the party concerned upon the approval by the principal in charge of the body;
2. For any case with inaccurate qualitative identification, wrong applied basis and improper punishment, propose to make amendments by the case-handling body;
3. For any case with unclear facts and insufficient evidences, propose to make them up by the case-handling body;
4. For any case with illegitimate procedures, propose to make rectification by the case-handling body;
5. For any case in which the alleged facts of violation are untrue or which has exceeded the time limit for legal responsibility, propose to close the case;
6. For any case in which the alleged facts of violation are minor and has been rectified timely, with no serious damage caused, propose not to impose administrative punishment;
7. For any case beyond its jurisdiction, propose to transfer the cases in line with the provisions by the case-handling body; and
8. For any case to be suspected involved in a crime, propose to transfer the case to judicial authorities.
　
Article 51 After the completion of examination by the examination body, the case files shall be timely returned to the case-handling body, who shall report the case files, proposed administrative punishment, and examination opinions to the principal in charge of the administrative authority for industry and commerce for decision.
　
Article 52 After the approval of the proposed administrative punishment by the principal in charge of the administrative authority for industry and commerce, the case-handling body shall inform, in its own name, the party concerned of the facts, reasons, basis and contents of the administrative punishment to be imposed, and shall inform the party concerned of the right to make statement and argue.
For notice made orally, the case-handling body or the entrusted organs shall record the information of the notification, and the party concerned shall affix his signature or seal on such records.
For notice made in written form, an administrative authority for industry and commerce may directly deliver the notice to the party concerned, or may entrust an administrative authority for industry and commerce in the place where the party concerned is located to deliver the notice, or may deliver the notice to the party concerned by post.
Where the notice can not be served with the aforementioned means, a public notice shall be issued by an administrative authority for industry and commerce.
Where the party concerned fails to present the statements or pleadings or fails to make any other response within 3 working days after the receipt of the notification, or within 15 working days after the registered letter is mailed by the case-handling authority, or within 15 days after the public notice is made, that party shall be deemed to have waived such rights.
Where the party concerned has not received, within the stipulated period, the notice served by post as stipulated by the preceding provision due to force majeure or other special circumstances, the party shall implement the rights within 3 working days after the actual receipt of the notice.
Where the proposed administrative punishment is within the scope of hearing, the party concerned shall be notified of the rights to request the hearing. Procedures of hearing for cases concerning administrative punishment shall be implemented in accordance with the specific provisions of the State Administration for Industry and Commerce.
　
Article 53 After notify the party of the proposed administrative punishment, an administrative authority for industry and commerce shall fully heed the opinions of the party concerned, and reexamine the facts, grounds and evidence put forward by the party concerned. If the facts, grounds and evidence put forward by the party concerned are established, the administrative authority for industry and commerce shall accept them. The administrative authority for industry and commerce shall not impose heavier punishment on the party concerned just because the party has tried to make statement, argue or apply for a hearing.

Section IV Decision
　
Article 54 After the examination of investigation conclusion reports, opinions of examination, reports of hearing, statement and argument opinions of the party concerned, and the proposed administrative punishment, the principal in charge of the administrative authority for industry and commerce shall respectively make such disposal decisions as imposing administrative punishment, closing the case, not imposing administrative punishment and transferring the case to another authority as the case may be.
　
Article 55 For a significant and complicated case, or a case with illegal activities of grave nature and on which a heavier punishment shall be imposed, an administrative authority for industry and commerce shall submit such case to the relevant meetings of the administrative authority for industry and commerce for a collective decision through discussion.
An administrative authority for industry and commerce of a provincial level shall determine the scope of significant and complicated cases, or cases with illegal activities of grave nature and on which heavier punishments shall be imposed.
　
Article 56 To impose an administrative punishment, an administrative authority for industry and commerce shall fill out a statement of decision on administrative punishment. Contents of a statement of decision on administrative punishment shall include:
1. Name, or title, and address of the party concerned;
2. Facts and evidence for the violation of law, regulations or rules;
3. Contents and basis for an administrative punishment;
4. Information of and reasons for the adoption of statement and defense of the party concerned;
5. Manner of and time limit for enforcement of an administrative punishment;
6. Channel and time limit for applying for administrative reconsideration or bringing an administrative lawsuit if the party concerned refuses to accept the decision on administrative punishment; and
7. Title of the administrative organ that makes the decision on administrative punishment and the date on which the decision is made.
On the statement of decision on administrative punishment shall be affixed the seal of the administrative organ that makes the decision on administrative punishment.
　
Article 57 Decisions shall be made for cases that are settled according to the ordinary procedures within 90 days since the day when the cases are filed; where the decisions can not be made for complicated cases within the stipulated time limit, the time limit may be postponed for 30 days upon the approval of the principal in charge of an administrative authority for industry and commerce; where the decisions still can not be made for specially complicated cases within the postponed time limit, they shall be submitted to the relevant meetings of the administrative authority for industry and commerce for collective discussion and the decision shall be made on whether the time limit shall be postponed again.
Period of hearing, public notice and authentication during the handling period of the cases shall not be counted into the case-handling time limit as stipulated by the preceding provision.
　
Article 58 Where an administrative authority for industry and commerce makes the decision that the administrative punishment shall or shall not be imposed, the case shall be closed or shall be transferred to another authority on the suspects in violation of law who are involved in the complaint, report and appealing, it shall notify the investigated party, and the named complainants, appealers or reporters of the results of the disposal.
Where the aforementioned notification shall be publicly released in accordance with the relevant provisions, they shall be released in a proper manner.
　
Article 59 Where a case on which an administrative punishment decision has been made is suspected to be involved in a crime, an administrative authority for industry and commerce shall timely transfer the case to a judicial authority in accordance with the relevant provisions.

Chapter IV Summary Procedure for Administrative Punishment
　
Article 60 If the illegal facts are solid and have legal basis, the law enforcers may make a decision on the spot on giving an administrative punishment of imposing a fine of less than RMB50 to a citizen or a fine of less than RMB1,000 to any legal person or other organization or a warning.
　
Article 61 For alleged activities of violation applied to the summary procedure, case-handling staffers shall investigate the alleged fact of violation on the spot, make records of on-spot examination and inquiry, collect necessary evidence, and fill out established and coded evidence.
The statement of decision on administrative punishment shall be given to the party on the spot, and the party concerned or the case-handling staffers shall affix their names or seal thereon.
　
Article 62 In the as stipulated in the preceding paragraph shall be clearly recorded the basic information of and illegal act committed by the party concerned, the basis for administrative punishment, the type of punishment, the amount of fine, the time and place, the channel for relief, and the title of the administrative organ, and shall be sealed by the administrative organ.
　
Article 63 Before deciding to impose administrative punishments, administrative organs shall notify the parties of the facts, grounds and basis according to which the administrative penalties are to be decided on and shall notify the party concerned that it or he has the right to make statement and defend itself/himself. Where the party concerned defends itself/himself, the case-handling staffer shall record such defense.
　
Article 64 The case-handling staffers shall submit the relevant materials with the cases applied to the summary procedure to the administrative authority for industry and commerce in the place where it is located for filing and saving.

Chapter V Period and Service
　
Article 65 The period shall be calculated in hour, day and month. The hour or day at the beginning of the period shall not be counted in. The period shall not include the time enroute. Where the last day of the period is a legal festival or holiday, the first day after the festival or holiday shall be expiration date of the period.
　
Article 66 The statement of decision on administrative punishment shall be given to the party on the spot after announcement of the decision; if the party is not present, the administrative authority shall, within seven days, serve the on the party in accordance with the provisions as stipulated in the following Article.
　
Article 67 The service of documents, except the notice of administrative punishment and the notice of hearing, shall be made in following manners by an administrative authority for industry and commerce:
1. Where a document or a notice is sent directly to the party concerned, the party concerned shall specify the date of receipt, and sign its/his name or seal on the return receipts. The date of receipt as specified by the party concerned shall be the date of service;
2. Where a document or a notice can not be sent directly, the service may be entrusted to a local administrative authority for industry and commerce, or be made via registered letter. Where the service is made by post, the date of receipt that is specified on the return receipts shall be the date of service; and
3. Where a document or a notice can not be served via the aforementioned manners, it shall be served through public notice. Where the service is made through public notice, the notice may be advertised in a national newspaper or a newspaper circulating in the province where the case-handling body is located, or may be posted up on the bulletin board of the administrative authority for industry and commerce, or may be released on the website of the administrative authority for industry and commerce simultaneously. Such service shall be deemed to have been effected at the expiration of 60 days after the date of promulgation. The reason for and the course of the service of public notice shall be specified in the case files.

Chapter VI Execution of Administrative Punishment
　
Article 68 After the decision on administrative punishment is made in accordance with law, the party shall execute the decision within the time limit prescribed in the decision.
　
Article 69 Where an administrative authority for industry and commerce imposes such punishment on the party concerned as a fine or confiscation of illegal income, the party concerned shall, within 15 days from the day of receiving the statement of decision on administrative punishment, pay the fined and confiscated income to the appointed bank. The case-handling staffers may collect fines on spot, subject to one of the following instances:
1. A fine less than RMB20 imposed according to law; or
2. A fine of more than RMB20 and less than RMB50 to a citizen or a fine of less than RMB1,000 to any legal person or other organization, if not collected on spot, shall be hardly executed; and
3. Where it is really difficult for the party in the area which is outlying, on water or not easily accessible to pay the fine to the bank as designated, the administrative organ or its law-enforcing officers may, upon the request of the party, collect the fine on the spot.
The case-handling staffers collecting fines on spot, must issue to the parties the uniform receipt for fines printed and issued by the financial departments of provinces, autonomous regions and municipalities directly under the Central Government.
　
Article 70 The case-handling staffers collecting fines on spot shall, within two days from the day of fine, hand the fines over to the administrative authority for industry and commerce, which shall within two days hand the fines over to the appointed banks.
　
Article 71 In case of failure by the party concerned to execute the decision on administrative punishment within the prescribed time limit, the administrative authority for industry and commerce making the decision on the punishment may take the following measures:
1. In case of failure to pay the fine in time, an additional fine shall be imposed amounting to three percent of the original fine on a daily rate basis;
2. In accordance with law, the sealed up or seized property can be put to auction to pay, or appropriation of the frozen bank deposit can be made for payment of the fine; or
3. Apply to the people's court for forcible execution.
　
Article 72 Where the party concerned really has economy difficulties, or needs to postpone payment of the fines or pay them in installments, the party shall submit an application in writing. The case-handling body shall notify, in written form and in name of the case-handling organ, the party concerned of the postponed period or the time limit of payment in installments, upon the approval of the principal in charge of the administrative authority for industry and commerce.
　
Article 73 The administrative authorities for industry and commerce shall establish amd modify the systems for managing and disposing the materials that are collected and confiscated. Detailed measures shall be compiled by the administrative authorities for industry and commerce of provincial level in accordance with the relevant provisions.
　
Article 74 Illegal property which has been confiscated with the exception of those to be destroyed according to law, must be auctioned publicly or otherwise disposed of according to relevantstipulations of the state.
The documents or vouchers confiscated shall be submitted to relevant authorities for uniform handling.
The items to be destroyed shall be disposed of in accordance with the relevant provisions of the State; where no provisions are made, two or more administrative staffers for industry and commerce shall supervise the destroying upon the approval of the principal in charge of the administrative authority for industry and commerce, and the records of destroying shall be made.
Lists shall be compiled for the materials to be disposed.
　
Article 75 Fines and realization amounts of the confiscated illegal property must be handed over in its entirety to the state treasury, and shall not be withheld or shared privately and secretly in any manner by any units or individuals.
　
Article 76 Where the compulsive measures are discharged, and the properties shall be returned to the party concerned, the administrative authority for industry and commerce shall notify the party concerned to collect such properties within 3 months; where the party concerned is indefinite, the party shall be notified through public notice to collect the properties within 6 months. Where nobody collects the properties after the time limit as stipulated in the notice or public notice expires, an administrative authority for industry and commerce may dispose the items via such measures as auction or selling off in accordance with the relevant provisions. And the realization amounts shall be deposited in the special accounts of administrative authority for industry and commerce. Where nobody collects the property within a year from the date of disposal, the realization amounts less the necessary expenditures for saving and disposing the objects shall be handed over to the finance department. Unless it is otherwise prescribed by any laws or regulations, they shall prevail.

Chapter VII Filing
　
Article 77 After the execution of the decision on administrative punishment, the administrative authority for industry and commerce shall timely put the case materials on archives according to the requirements as follows:
1. A separate volume of case file shall be made for each case. And a case file may be divided into a main volume and an associate volume;
2. Documents shall be complete and procedures shall be perfect;
3. Documents shall be written with brush pen and pen, or shall be printed; and
4. Case files shall be bound in a standard and orderly manner, and shall be qualified with requirements of the documents.
　
Article 78 The main volume shall be bound in order as follows:
1. Form of examination and approval of filing the cases;
2. Statement of decision for administrative punishment;
3. Other legal documents that are released to the party concerned;
4. Return receipt of the service;
5. Records of hearing;
6. Materials of evidence;
7. Receipts of the property disposal; and
8. Other relevant materials.
The associate volume shall be bound in order as follows:
1. Materials of the complaint, appealing and report;
2. Reports and approval of conclusion of the investigation;
3. Opinions of examination;
4. Report of hearing; and
5. Other relevant materials.
　
Article 79 Where the case files are put on archive, any unit or individual shall not revise, increase and take out the materials of the records. The storage and check of case files shall be implemented in accordance with the relevant provisions concerning the archival administration.

Chapter VIII Supervision
　
Article 80 The principal in charge of an administrative authority for industry and commerce shall have the right to decide to reexamine the decision on administrative disposals made by his own organ in accordance with these Provisions.
The superior administrative authority for industry and commerce shall have the right to reexamine the decision on administrative disposals made by an inferior administrative authority for industry and commerce in accordance with these Provisions.
　
Article 81 A superior administrative authority for industry and commerce directly examining the decision on administrative disposals made by an inferior administrative authority for industry and commerce may make a direct rectification to the wrong decisions made by the inferior authority, or may request the inferior authority to rectify the wrong decisions by itself.
An inferior administrative authority for industry and commerce shall implement the rectification decision made by its superior administrative authority for industry and commerce.
　
Article 82 Where a superior administrative authority for industry and commerce requests an inferior authority to reexamine the case, the inferior authority shall conclude the investigation of case within the time limit as stipulated by the superior authority.
The inferior administrative authority for industry and commerce shall report the decision of examination to the superior authority within 10 days after the decision is made.
　
Article 83 Where an administrative authority for industry and commerce that has made the decision on administrative disposals reexamines the decision, the original case-handling staffers shall recuse themselves.
　
Article 84 Where the original decisions of administrative punishments shall be reexamined, the conclusion of examination shall generally be decided through collective discussion at relevant meetings of the administrative authority for industry and commerce.
　
Article 85 Where the administrative authorities for industry and commerce and their case-handling staffers impose the administrative punishments in violation of laws, administrative regulations and these Provisions, they shall be investigated with the administrative liabilities according to the circumstances; where the circumstances are severe, and they are suspicious for committing a crime, they shall be transferred to the judicial authorities.

Chapter IX Supplementary Provisions
　
Article 86 The administrative authorities for industry and commerce as stated in these Provisions shall refer to the administrative bureaus for industry and commerce of above the county level.
　
Article 87 These Provisions shall be applicable to the imposition of administrative punishments by administrative bureaus, teams and offices for industry and commerce with independent legal enforcement power.
　
Article 88 Such wording as "above", "less than" and "within" as stipulated in these Provisions shall include the original number.
　
Article 89 These documents of administrative punishments shall be uniformly compiled by the State Administration for Industry and Commerce.

Article 90 These Provisions shall take effect as of October 1, 2007. The Tentative Regulations for Procedures of Administrative Punishment of Administrative Authorities for Industry and Commerce which was released by the State Administration for Industry and Commerce on October 17, 1996 shall be abolished.